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Payday Loan Laws in Washington

payday loan laws in washington state

Payday loans are ideal for those unexpected situations that require fast cash without the hassle or wait of traditional loans. The payday loan laws in Washington state, however, are some of the most straightforward laws concerning these short-term loans of any state in the US. This means that there are no hidden fees or unexpected charges that can turn a small loan into a difficult financial situation, and Washington residents have the added benefit of the right to change their mind within one day after the loan was obtained.

It is important to note that payday loans are not availble in every state and laws and regulations vary by state. Information for Massachusetts Payday Loans is provided for your convenience.

Payday loans have become extremely popular because they are available to virtually anyone with active employment, including those with bad or no credit. The Department of Financial Institutions regulates payday lenders, and not only grants borrowers to right to know all of the costs associated with the loans upfront, but also protects them from the threat of criminal prosecution should the loan become past due. Both local and Internet payday lenders are required to licensed with the DFI, which makes payday loans in this state safe, as well as convenient.

Payday loan laws in Washington limit the amount that can be borrowed to a maximum of either $700 or 30% of the employment income before taxes. While loans may not extend beyond 45 days, Washington does allow installment plans to be arranged should the borrower be unable to pay the balance by the established due date. The laws also limit the number of loans that can be taken in a 12-month period to 8, although any loan currently being repaid through an installment plan will make the borrower ineligible to obtain additional loans while the installment plan is active.

The fees of payday loans in Washington are the aspect that makes them particularly beneficial to borrowers in this state, as the schedule of fees schedule is

one of the most straightforward of any state in the US. Fees are set at 15% of the loan balance for the first $500, with 10% of amount over $500 added to the total. The benefit of this easy-to-understand pay structure is that it makes it possible to determine the exact amount of repayment before a loan is obtained.

Washington state also has a unique perk that is not common in most states that offer payday loans, and that is the ability to change your mind within a 24-hour period. This means that borrowers are allowed to repay their loan the very next day and avoid the paying of any fees whatsoever. This 24-hour grace period makes payday loans ideal for sudden expenses, as well as spur-of-the-moment purchases.

Payday loans are the fastest and easiest way to get money for the unexpected expenses that cannot wait until the next paycheck, and in Washington state, the laws regarding these loans are particularly favorable to the borrower. A set fee schedule eliminates the risk of hidden charges, while the ability to establish an installment plan eliminates the pressure of repayment should the borrower be unable to pay the balance on the scheduled due date. The right to change your mind within a 24-hour period may be the best perk of Washington payday loans, repayment the very next day completely eliminates the additional fees. Lenders are also required to be registered with the Department of Financial Institutions to offer payday loans in this state, and borrowers may file complaints with the DFI should a dispute arise.

Take a look at the benefits of applying for Online Payday Loans if availble in your state.


When my car broke down unexpectedly, I did not know how I was going to afford the repairs and make it to work. Luckily I found Purple Payday Loans and they helped me get the cash advance I needed to get my car fixed and get back to work!

Monica P.

Category: Payday loans

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